INDIANAPOLIS, Aug. 4, 2005 (PRIMEZONE) -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) reports results of operations for the 12 weeks ended June 25, 2005.
Net income for the quarter was $674,000 compared to $1,618,000 last year. Earnings per diluted common share were $0.08 compared to $0.20 last year. Operating income for the first quarter was $5,389,000 compared to $6,905,000 last year.
Sales and other revenues for the first quarter were $409,780,000, an increase of $9,928,000 or 2.5% over last year.
Sales in comparable supermarkets and convenience stores were above last year by 1.6%, the fifth consecutive quarter of positive comparable store sales. Comparable stores are those which were open during both quarters. Comparable store merchandise sales, which excludes gasoline sales, improved 0.6% from last year (a). The Company excludes gasoline sales from its analysis of comparable store merchandise sales because retail gasoline prices fluctuate widely and frequently, which make analytical comparisons difficult.
During the quarter, the Company opened one Arthur's Fresh Market(r). The Company also closed one Village Pantry during the quarter.
"First quarter results were not up to our expectations. We have identified a number of cost reduction and other profit improvement actions which we expect to implement during the remainder of fiscal 2006," said Don E. Marsh, Chairman and Chief Executive Officer.
"We will open a new lifestyle store in suburban Chicago during the second quarter. We are excited about the opportunities this presents, as we enter into a new, dynamic market. We believe our superior quality and service will continue to set us apart from other supermarkets as we enter the Chicago market."
Marsh is a leading regional chain, operating 69 Marsh(r) supermarkets, 38 LoBill(r) Foods stores, 8 O'Malia(r) Food Markets, 160 Village Pantry(r) convenience stores, 2 Arthur's Fresh Market stores, and 1 Savin*$(sm), in Indiana and western Ohio. The Company also operates Crystal Food Services(sm), which provides upscale catering, cafeteria management, office coffee, coffee roasting, vending and concessions, and restaurant management, and Primo Banquet Catering and Conference Centers; Floral Fashions(r), McNamara(r) Florist and Enflora(r) -- Flowers for Business.
Cautionary Note Regarding Forward-Looking Statements
This report includes certain forward-looking statements (statements other than those made solely with respect to historical fact). Actual results could differ materially and adversely from those contemplated by the forward-looking statements due to known and unknown risks and uncertainties, many of which are beyond the Company's control. The forward-looking statements and the Company's future results, liquidity and capital resources are subject to risks and uncertainties including, but not limited to, the following: the entry of new competitive stores and their impact on the Company; the level of discounting and promotional spending by competitors; the Company's ability to improve comparable store sales; the level of margins achievable in the Company's operating divisions; the stability and timing of distribution incentives from suppliers; the Company's ability to amend or refinance its revolving credit facility; softness in the local economy; the Company's ability to control expenses including employee medical costs, labor, credit card fees, and workers compensation and general liability expense; uncertainties regarding gasoline prices and margins; the success of the Company's new and remodeled stores; uncertainties regarding future real estate gains due to limited real estate holdings available for sale; potential interest rate increases on variable rate debt, as well as terms, costs and the availability of capital; the Company's ability to collect outstanding notes and accounts receivable; uncertainties related to state and federal taxation and tobacco and environmental legislation; uncertainties associated with pension and other retirement obligations; uncertainties related to the outcome of pending litigation; the timely and on budget completion of store construction, conversion and remodeling; and other known and unknown risks and uncertainties. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
(a) See attached schedule -- Reconciliation of Comparable Store
Sales and Comparable Store Merchandise Sales.
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------
(in thousands, except per share amounts)
(Unaudited)
12 Weeks Ended
----------------------
June 25, June 19,
2005 2004
--------- ---------
Sales and other revenues $ 409,780 $ 399,396
Gains from sales of property -- 456
--------- ---------
Total revenues 409,780 399,852
Cost of merchandise sold, including
warehousing and transportation,
excluding depreciation 287,354 281,123
--------- ---------
Gross profit 122,426 118,729
Selling, general and administrative 111,065 106,039
Depreciation 5,972 5,785
--------- ---------
Operating income 5,389 6,905
Interest 4,447 4,283
Other non-operating income (119) --
--------- ---------
Income before income taxes 1,061 2,622
Income taxes 387 1,004
--------- ---------
Net income $ 674 $ 1,618
========= =========
Earnings per common share:
Basic $ .09 $ .20
Diluted .08 .20
Dividends declared per share $ .13 $ .13
MARSH SUPERMARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(in thousands)
(Unaudited)
June 25, June 19,
2005 2004
--------- ---------
Assets
Current assets:
Cash and equivalents $ 46,305 $ 41,656
Accounts and notes receivable, net 22,941 22,924
Inventories 135,612 127,280
Prepaid expenses 4,869 3,829
Recoverable income taxes 1,226 3,289
--------- ---------
Total current assets 210,953 198,978
Property and equipment,less allowances
for depreciation 316,343 294,955
Other assets 50,529 52,801
--------- ---------
Total Assets $ 577,825 $ 546,734
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 83,639 $ 76,333
Accrued liabilities 48,322 46,925
Current maturities of long-term liabilities 78,937 5,080
--------- ---------
Total current liabilities 210,898 128,338
Long-term liabilities:
Long-term debt 132,579 181,163
Capital leaseobligations 26,921 27,935
Pension and post-retirement benefits 53,649 43,766
--------- ---------
Total long-term liabilities 213,149 252,864
Deferred items:
Income taxes 8,380 18,483
Gains from sale/leasebacks 16,196 15,337
Other 5,292 3,526
--------- ---------
Total deferred items 29,868 37,346
Shareholders' Equity:
Common stock, Classes A and B 26,699 26,588
Retained earnings 130,520 131,399
Cost of common stock in treasury (15,876) (15,724)
Deferred cost -- restricted stock (120) (191)
Notes receivable -- stock purchases (11) (11)
Accumulated other comprehensive loss (17,302) (13,875)
--------- ---------
Total shareholders' equity 123,910 128,186
--------- ---------
Total Liabilities and Shareholders' Equity $ 577,825 $ 546,734
========= =========
MARSH SUPERMARKETS, INC.
Reconciliation of Comparable Store Sales
and Comparable Store Merchandise Sales
June 25, June 19, %
2005 2004 Change
-------- -------- ------
(000) (000)
Total revenues $409,780 $399,852 2.5%
Less: other revenues/non-comparable
sales and gains from sales
of property(a) 30,770 26,817
-------- --------
Comparable supermarket and
convenience store sales 379,010 373,035 1.6%
Less: comparable store gasoline sales(b) 41,066 37,058
-------- --------
Comparable supermarket and convenience
store merchandise sales 337,944 335,977 0.6%
======== ========
(a) Other revenues and non-comparable sales include sales and
revenues of both Crystal Foodservice and McNamara, as well as
supermarket and convenience store revenues from video rental,
lottery tickets, check cashing fees and other sources.
(b) The Company excludes gasoline sales from its analysis of
comparable store sales because retail gasoline prices fluctuate
widely and frequently, making analytical comparisons difficult.